Strong third quarter for Arkansas Best

In the third quarter, ABF Freight’s revenue rose to $471 million, an increase of more than $20 million, year over year, but “union salary wage and benefit costs remained unacceptably high as the previous national labor agreement remained in place,” according to the company.
ABF and the International Brotherhood of Teamsters came to an agreement on a new labor contract Nov. 3 after a protracted negotiating period lead to a strike threat by some union members. ABF said the cost savings achieved by the new contract, which runs through March 31, 2018, will fund future network improvements. Additional savings opportunities for the company, which are being outlined in an ongoing network analysis, will be announced during the first half of next year.
For Arkansas Best as a whole, the company finished the third quarter with revenues of $623.4 million, finishing up 7.9 percent compared to the third quarter of 2012.
Net income rose from $6.5 million in the third quarter of 2012 to $14 million.
“This was our strongest quarter of the year thanks to the solid performances of our emerging businesses and a tonnage uptick for ABF Freight,” said Arkansas Best President Judy McReynolds said in a statement. “In particular, Panther Expedited Services, which we acquired in June 2012, showed improved demand in several of the industries it serves.”